Home Based Business Tax Deductions & Write Offs 2009, 2010

If you run your business out of your home you may want to write off many of your household expenses. How in the world do you know which write offs qualify?

Expenses that are deductible include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, painting, repairs and depreciation. Generally, expenses related to the rent, purchase, maintenance and repairs of a personal residence are not deductible. However, if you use part of your home for business purposes you may be able to take a home based business tax deduction.

In order to qualify for a home based business tax deduction, you must use part of your home:

  • Regularly and exclusively as your principal place of business, as a place to meet or deal with clients, patients, or customers in the normal course of your business, or in connection with your trade or business.
  • You cannot claim this area of your home for a tax deduction if it is also used for personal use.
  • The exception is concerning the use of the home for daycare provisions, certain storage use such as inventory or product samples, as rental property.
  • If you use a separate structure not attached to your home for an exclusive and regular part of your business, you are entitled to deduct expenses related to it.



If you the owner of the home based business, use Form 8829 to figure your home office deduction and report those deductions on line 30 of your Schedule C, Form 1040.

Donʼt forget; if you are going to itemize deductions then, you cannot claim the standard deduction. If youʼre looking for a home mortgage tax break then you must itemize your tax deductions.

Make sure you keep accurate records of all of your expenses. You must to have the receipts to substantiate your claims. If you are going to use your home for business and want to claim your mortgage interest as a tax deduction, your mortgage lender will send you an official record of your mortgage interest paid. You will need to keep that paper in your tax records.

As a self-employed business owner you are entitled to claim all of the tax write offs you deserve. Donʼt miss out on any you may have not thought of.

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